Merger won’t affect expansion

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ISHPEMING - The merger between Cleveland Cliffs Inc. and Alpha Natural Resources announced Wednesday morning isn't expected to affect operations at the Tilden and Empire mines - or the planned surge in pellet production.

The two iron ore mines, both operated by CCI, will continue with full-scale production. Recently announced plans for a nugget-producing facility, a $500 million capital investment and increased production at the Empire Mine will all move forward, said Dale Hemmila, the district manager of public affairs for CCI.

"Nothing is going to change in our production and all of the plans that have been announced are going to progress as expected," Hemmila said. "It's going to be business as usual around here."

The merger between the two mining companies will result in a combined company renamed Cliffs Natural Resources. The new company will own nine iron ore facilities and more than 60 coal mines in North and South America and Australia.

The boards of both companies have approved the deal, in which CCI will acquire all outstanding shares of Alpha and Alpha shareholders will receive 0.95 CCI shares and $22.23 in cash for each share held. The deal is subject to approval by the stockholders of the two companies, but CCI said in a press release that it is expected to be approved by the end of 2008.

Hemmila said there are no plans to interrupt the the investment into the Empire Mine or the expected increase of 375 new full-time jobs and increased pellet production that will come from it.

That news is being received well throughout the county.

"All around, there isn't a downside to this," said Amy Clickner, the CEO of the Lake Superior Community Partnership. "These are not only jobs, but they're family-sustaining jobs with benefits. From a community standpoint, that's a huge impact."

In total, the company puts more than $400 million in wages, benefits and economic impact into Marquette County, Clickner said.